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Abridged results for CoreShares Index Tracker Collect Investment Scheme & CoreShares Index Tracker Managers PTXTEN
CoreShares Index Tracker Managers (RF) Proprietary Limited
CoreShares PropTrax Ten
Share code: PTXTEN ISIN: ZAE000155362
("PTXTEN")
A portfolio in the CoreShares Index Tracker Collective Investment Scheme (formerly Grindrod Index
Tracker Collective Investment Scheme)(“the Scheme”) registered as such in terms of the Collective
Investment Schemes Control Act, 45 of 2002, managed by CoreShares Index Tracker Managers (RF)
Proprietary Limited (formerly Grindrod Index Tracker Managers Proprietary Limited)(“the Manager”)
ABRIDGED RESULTS FOR CORESHARES INDEX TRACKER COLLECTIVE INVESTMENT
SCHEME AND CORESHARES INDEX TRACKER MANAGERS PROPRIETARY LIMITED FOR THE
PERIOD ENDED 30 SEPTEMBER 2015
The financial information set out in this announcement is based on the financial statements which have
been audited by the auditors Deloitte & Touche. Their unmodified audit report is available for inspection
at the Manager’s registered address.
The full financial statements are available on www.grindrodbank.co.za.
STATEMENT OF FINANCIAL POSITION
As at 30 September 2015
30 September 30 September
Notes 2015 2014
R R
ASSETS
CURRENT ASSETS
Listed investments held at fair value 1 239,492,596 148,168,831
Distributions receivable 7,717 5,017
Contributions receivable - 3,238,210
Cash and cash equivalents 1 5,722,531 2,866,055
TOTAL ASSETS 245,222,844 154,278,113
EQUITY AND LIABILITIES
EQUITY
Net assets attributable to investors 242,375,955 150,841,291
CURRENT LIABILITIES
Trade and other payables 4 2,846,889 3,436,822
TOTAL EQUITY AND LIABILITIES 245,222,844 154,278,113
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
For the year ended 30 September 2015
15 months *
30 September 30 September
Notes 2015 2014
R R
Distribution income 11,002,039 9,913,912
Interest income 39,609 2,046,529
Investment income 11,041,648 11,960,441
Other income - 47,909
Total Revenue 11,041,648 12,008,350
Management and administration expenses (1,154,049) (1,197,505)
Profit before taxation 9,887,599 10,810,845
Taxation 7 - -
Profit and total comprehensive income 3 9,887,599 10,810,845
Distributions paid (8,985,774) (9,472,207)
901,825 1,338,638
Realised gains on financial instruments designated at fair
value through profit or loss 12,862,321 2,081,237
Unrealised gains on financial instruments designated at fair
value through profit or loss 22,809,379 5,545,295
Total fair value adjustments 35,671,700 7,626,532
Increase in net assets attributable to investors 36,573,525 8,965,170
* The year end of the fund changed from 30 June 2014 to 30 September 2014 after the Manager was purchased by
GFS Holdings (Pty) Ltd, and therefore the amounts reported above are not comparable to the prior period.
STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO
INVESTORS
For the year ended 30 September 2015
Capital Accumulated
Contributions Profit Total
R R R
Balance at 30 June 2013 139,971,538 1,346,534 141,318,072
Net asset value adjustment 25,445 (25,445) -
Creation of 200 000 units on 21 November 2013 2,823,726 2,823,726
Liquidation of 300 000 units on 6 January 2014 (4,312,521) (4,312,521)
Liquidation of 200 000 units on 19 March 2014 (2,807,406) (2,807,406)
Creation of 100 000 units on 12 September 2014 1,613,237 1,613,237
Creation of 100 000 units on 16 September 2014 1,616,040 1,616,040
Liquidation of 100 000 units on 16 September
2014 (1,613,237) (1,613,237)
Creation of 200 000 units on 30 September 2014 3,238,210 3,238,210
Change in net assets attributable to investors 7,626,532 1,338,638 8,965,170
Balance at 30 September 2014 148,181,564 2,659,727 150,841,291
Creation of 100 000 units on 13 October 2014 1,644,362 1,644,362
Creation of 200 000 units on 24 October 2014 3,310,551 3,310,551
Creation of 200 000 units on 30 October 2014 3,449,691 3,449,691
Creation of 200 000 units on 28 November 2014 3,540,587 3,540,587
Creation of 100 000 units on 15 December 2014 1,778,170 1,778,170
Creation of 300 000 units on 23 December 2014 5,332,741 5,332,741
Creation of 200 000 units on 21 January 2015 3,724,812 3,724,812
Creation of 300 000 units on 29 January 2015 5,837,527 5,837,527
Creation of 100 000 units on 11 February 2015 1,927,423 1,927,423
Creation of 100 000 units on 17 February 2015 1,953,616 1,953,616
Creation of 200 000 units on 26 February 2015 3,924,553 3,924,553
Creation of 150 000 units on 25 March 2015 2,989,836 2,989,836
Creation of 400 000 units on 10 April 2015 8,155,209 8,155,209
Creation of 200 000 units on 05 May 2015 3,985,852 3,985,852
Creation of 146 693 units on 08 July 2015 2,743,644 2,743,644
Creation of 100 000 units on 24 July 2015 1,974,582 1,974,582
Creation of 100 000 units on 03 August 2015 1,978,071 1,978,071
Creation of 200 000 units on 31 August 2015 3,927,973 3,927,973
Liquidation of 360 000 units on 20 May 2015 (7,218,061) (7,218,061)
Change in net assets attributable to investors 35,671,700 901,825 36,573,526
Balance at 30 September 2015 238,814,402 3,561,552 242,375,955
STATEMENT OF CASH FLOWS
for the period ended 30 September 2014
15 months 12 months
30 September 30 June
Notes 2014 2013
R R
CASH FLOWS FROM OPERATING ACTIVITIES
Cash utilised by operations
A 12,616,122 (8,182,106)
Distributions paid
B (8,985,774) (9,472,207)
Net cash (outflow)/inflow from operating activities
3,630,348 (5,693,872)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of investments
(112,348,672) (73,224,823)
Proceeds from sale of investments
56,613,661 79,666,935
Net cash inflow/(outflow) from investing activities
(55,735,011) 6,442,112
CASH FLOWS FROM FINANCING ACTIVITIES
Contributions received
62,179,200 9,291,213
Contributions repaid
(7,218,061) (8,733,164)
Net cash inflow from financing activities
54,961,139 558,049
NET INCREASE IN CASH
2,856,476 1,306,289
Cash at beginning of period
2,866,055 1,559,766
CASH AT END OF PERIOD
5,722,531 2,866,055
ACCOUNTING POLICIES
For the year ended 30 September 2015
The financial statements have been prepared consistently on the following principal accounting policies:
1. Basis of Preparation
The financial statements are prepared on a historic cost basis, except for financial instruments, which are accounted for
as set out below.
The financial statements are prepared in accordance with International Financial Reporting Standards (“IFRS’’), its
interpretations adopted by the International Accounting Standards Board (“IASB”), the SAICA Financial Reporting
Guides as issued by the Accounting Practices Committee and Financial Reporting Pronouncements as issued by the
Financial Reporting Standards Council, the JSE Listings Requirements, the requirements of the Coreshares Index
Tracker Collective Investment Scheme Deed and the Collective Investment Schemes Control Act, 45 of 2002 ("the
Act").
At the date of approval of the annual financial statements, the following new standards, interpretations and amendments
that apply to the Scheme were in issue but not yet effective:
New standards
IFRS 9 - Financial Instruments - Effective for annual period beginning on or after 1 January 2018.
IFRS 14 - Regulatory deferral accounts- Effective for annual period beginning on or after 1 January 2016.
IFRS 15 - Revenue from contracts with customers - Effective for annual period beginning on or after 1 January 2018.
Amendments to existing standards
At the date of approval of the annual financial statements, there were no amendments to existing standards in issue but
not yet effective that may have the effect on the Scheme's financial statements.
2. Functional and reporting currency
The annual financial statements are presented in South African Rands which is the functional currency of the Scheme.
3. Use of estimates and judgements
The preparation of financial statements in conformity with IFRS requires the use of certain critical estimates,
judgements and assumptions that affect the reported amounts. It also requires management to exercise its judgement in
the Scheme’s process of applying the accounting policies. Actual results may vary from these estimates. There are no
areas involving a higher degree of judgement complexities or areas where assumptions or estimates are significant.
4. Financial Instruments
Measurement
Financial instruments are recognised when the Scheme becomes a party to the contractual provisions of that particular
instrument. Financial instruments are initially measured at fair value, which except for financial instruments not at fair
value through profit and loss, include direct attributable transaction costs. Subsequent to initial recognition, these
instruments are measured as set out below.
Investments
Listed investments are measured at fair value. Fair value is determined with reference to quoted market prices at the
reporting date, as published in the financial press at the reporting date.
Cash and cash equivalents
Cash and cash equivalents are measured at fair value.
Financial liabilities
Financial liabilities, other than those held at fair value through profit or loss, are measured at amortised cost using
effective interest rate method. Financial liabilities arising from the securities issued by the Scheme are carried at the
fair value representing the investor’s right to a residual interest in the Scheme’s net assets, i.e. the net asset value of the
Scheme. Changes in the fair value are included in net profit or loss in the year in which the change arises.
Fair value against and losses on subsequent measurement
Unrealised gains and losses arising from a change in the fair value of financial instruments are included in statement of
net assets attributable to investors.
Offset
Financial assets and financial liabilities are offset and the net amount reported in the statement of financial position
when the Scheme has a legally enforceable right to set off the recognised amounts, and intends to settle on a net basis,
or to realise the asset and settle the liability simultaneously.
Derecognition of financial instruments
The Scheme derecognises financial assets when:
- The contractual rights to the cash flows arising from the financial assets have expired or have been
forfeited by the Scheme; or
- It transfers the financial assets including substantially all the risks and rewards of ownership of the
assets; or
- It transfers the financial assets, neither retaining nor transferring substantially all the risks and rewards
of the ownership of the asset, but no longer retains control of the asset.
A financial liability is derecognised when the liability is extinguished. This is, when the obligation specified in the
contract is discharged, cancelled or has expired.
The difference between the carrying amount of a financial liability (or part thereof) extinguished or transferred to
another party and consideration paid, including any non-cash assets transferred or liabilities assumed, is recognised in
profit or loss.
5. Revenue
Revenue comprises income from distribution income and interest income.
Interest income
Interest income is recognised in the statement of profit or loss and other comprehensive income, using the effective rate
method taking into account the expected timing and amount of cash flows.
Distribution income
Distribution income in the form of cash and manufactured dividends are recognised when the right to receive payment
is established. Manufactured dividends received are recognised as income in profit or loss.
6. Income tax
Under the current system of taxation in South Africa, the Scheme is exempt from paying tax on income or capital gains.
Both income and capital gains are taxed in the hands of investors.
7. Securities lending
The portfolio engages in securities lending activities up to 50% of the assets under management. Collateral is held by
the relevant lending desks. There was no lending activity at year end.
8. Expenses
Expenses are recognised on the accrual basis.
9. Impairment
Financial assets that are stated at amortised cost are reviewed at each reporting date to determine whether there is
objective evidence of impairment. If any such indication exists, an impairment loss is recognised in profit or loss as the
difference between the asset’s carrying amount and the present value of estimated future cash flows discounted at the
financial asset’s original effective interest rate. If in a subsequent period the amount of an impairment loss recognised
on a financial asset carried at amortised cost decreases and the decrease can be linked objectively to an event occurring
after the write-down the impairment loss is reversed through profit or loss.
10. Distributions
Distributions payable on redeemable securities are recognised in profit or loss as distributions.
In accordance with the Coreshares Index Tracker Collective Investment Scheme Deed, the Portfolio distributes its
distributable income and any other amounts determined by the Manager as defined on page 4, to security investors in
cash. The distributions are payable shortly after the end of each quarter and recognised in the statement of
comprehensive income and as distributions.
11. Creations and redemptions
Investors can acquire the Scheme's securities by trading on the JSE. These purchases will be made at the current
market price of the securities plus a brokerage fee that is negotiable with the broker and any additional transaction costs
applicable to such a trade.
The cash subscription price and number of the Scheme's securities to be issued to an investor for cash will be
determined by the amount which the investor invests (net of transaction costs) and will be a function of the pro rata cost
to the portfolio of acquiring the underlying basket of securities.
Investors subscribing for the Scheme's securities, by the delivery of one or more full baskets of constituent securities,
are obliged to deliver securities with a perfect match to the index.
Investors may sell securities by trading on the JSE.
Securities prices are determined by reference to the net assets of the Portfolio divided by the number of securities in
issue. For unit pricing purposes, net assets are determined using the last reported trade price for securities. These
prices may differ from the market price quoted on the JSE.
12. Redeemable securities
All redeemable securities issued by the Scheme provide investors with the right to require redemption for cash or in
specie at the value proportionate to the investors’ share. Such instruments give rise to a financial liability for the net
asset value of the redemption amount in the Scheme’s net assets at redemption date. In accordance with the Coreshares
Index Tracker Collective Investment Scheme Deed and the Act, the Scheme is contractually obliged to redeem
securities at the net asset value. A redemption fee, depending on the size of the recall, would be payable by the investor
making the redemption.
13. Net assets attributable to security investors
Securities are redeemable at the security investor’s option and are therefore classified as financial liabilities. The
securities may be sold back to the Portfolio at anytime. The fair value of redeemable securities is measured at the
redemption amount that is payable (in cash and securities representing each investor’s equal, undivided and vested
interest in the assets as a whole, subject to liabilities, as defined by the Coreshares Index Tracker Collective Investment
Scheme Deed) at the reporting date if security investors exercise their right to put the securities back to the Scheme.
14. Increase/decrease in net assets attributable to security investors.
Income not distributed is included in net assets attributable to security investors.
ABRIDGED RESULTS FOR CORESHARES INDEX TRACKER MANAGERS (RF) PROPRIETARY
LIMITED FOR THE PERIOD ENDED 30 SEPTEMBER 2015
STATEMENT OF FINANCIAL POSITION
as at 30 September 2015
30 September 30 September
Notes 2015 2014
R R
ASSETS
NON-CURRENT ASSETS
Loan to holding company 7 7,300,000 7,300,000
CURRENT ASSETS
Other assets 1 975,407 617,546
Cash and cash equivalents 530,025 520,278
TOTAL ASSETS 8,805,432 8,437,824
EQUITY AND LIABILITIES
Share capital 2 100 100
Accumulated profit / (loss) - -
Equity 100 100
CURRENT LIABILITIES
Loans 3 7,300,000 7,300,000
1,505,332
Other liabilities 4 1,137,724
TOTAL EQUITY AND LIABILITIES 8,805,432 8,437,824
STATEMENT OF COMPREHENSIVE INCOME
for the year ended 30 September 2015
15 Months
30 September 30 September
Notes 2015 2014
R R
Revenue 2,615,416 2,411,802
Operating expenditure (2,652,960) (2,435,402)
Operating Loss (37,544) (23,600)
Finance income 37,544 23,600
NET PROFIT BEFORE TAXATION 5 - -
Taxation - -
NET PROFIT AFTER TAXATION - -
Other comprehensive income - -
TOTAL COMPREHENSIVE INCOME FOR THE
YEAR - -
STATEMENT OF CHANGES IN EQUITY
for the year ended 30 September 2015
Share Accumulated
Notes Capital Profit/ (Loss) Total
R R R
Balance at 30 June 2013 100 - 100
Total comprehensive income for the year - - -
Balance at 30 September 2014 100 - 100
Total comprehensive income for the year - - -
Balance at 30 September 2015 100 - 100
STATEMENT OF CASH FLOWS
for the period ended 30 September 2015
15 Months
30 September 30 September
Notes 2015 2014
R R
NET PROFIT BEFORE TAXATION - -
Working capital changes:
Increase in other assets (357,861) (172,154)
Increase in other liabilities 367,608 1,012,980
Net cash inflow from operating activities 9,747 840,826
Net cash outflow from investing activities
Increase in loans to holding company - (319,112)
Net cash outflow from financing activities
Decrease in loans from shareholders - (1,553)
NET INCREASE IN CASH AND CASH EQUIVALENTS 9,747 520,161
Cash and cash equivalents at the beginning of the period 520,278 117
CASH AND CASH EQUIVALENTS AT THE END OF THE
PERIOD 530,025 520,278
ACCOUNTING POLICIES
30 September 2015
The financial statements of the Company are prepared in accordance with International Financial Reporting
Standards("IFRS") and the Companies Act of South Africa and have been prepared on the historical cost basis except for
the revaluation of certain financial instruments.
At the date of approval of the annual financial statements, the following new standards, interpretations and amendments
that apply to the group were in issue but not yet effective:
New standards
IFRS 14 - Regulatory deferral accounts- Effective for annual period beginning on or after 1 January 2016
IFRS 15 - Revenue from contracts with customers - Effective for annual period beginning on or after 1 January
2018
Amendments to existing standards
IAS 1 - Presentation of financial statements - Effective 1 January 2016
IFRS 9 - Financial Instruments - Effective for annual period beginning on or after 1 January 2018
IFRS 11 - Accounting for acquisitions of interests in joint operations - Effective for annual period beginning on or
after 1 January 2016
IAS 38 - Clarification of acceptable methods of depreciation and amortisation - Effective for annual period
beginning on or after 1 January 2016
The principal accounting policies adopted in the preparation of these financial statements are set out below:
1. Revenue Recognition
Income derived from services rendered is recognised where it is probable that economic benefits will flow to the
entity and the stage of completion and the amount can be reliably measured.
Interest income is recognised on a time proportion basis which takes into account the effective yield on the asset.
Interest income includes the amount of amortisation of any discount or premium.
Dividend revenue from investments is recognised when the shareholder has a right to receive payment.
2. Loans and receivables
Trade receivables, loans and other receivables that have fixed or determinable payments that are
not quoted in an active market are classified as "loans and receivables". Loans and receivables
are measured at amortised cost using the effective interest method less any impairment. Interest
income is recognised by applying the effective interest rate, except for short term receivables
where the recognition of interest would be immaterial.
3. Related party transactions
Parties are considered to be related if one party has the ability to control or exercise significant
influence over the other party in making financial and operating decisions. The company enters
into various related party transactions in the ordinary course of business. The terms and conditions
of related party transactions are no more favourable than those granted to third parties in arm's
length transactions.
4. Financial Liabilities
Financial liabilities which include trade payables and shareholders' loans are measured at amortised cost using the
effective interest rate method.
5. Use of estimates and judgements
The preparation of financial statements in conformity with IFRS requires the use of certain critical estimates,
judgements and assumptions that affect the reported amounts. It also requires management to exercise its
judgement in the Scheme’s process of applying the accounting policies. Actual results may vary from these
estimates. There are no areas involving a higher degree of judgement complexities or areas where assumptions or
estimates are significant.
6. Taxation
Income tax on profit or loss for the period comprises current and deferred tax. Income tax is recognised in profit or
loss except to the extent that it relates to items recognised directly in equity, in which case it is recognised in equity.
Current tax is the expected tax payable on the taxable income for the year, using the tax rates enacted or
substantively enacted at the reporting date and any adjustment to tax payable in respect of previous years.
Deferred tax is provided using the comprehensive liability method, based on temporary differences. Temporary
differences are differences between the carrying amounts of assets and liabilities for financial reporting purposes
and their tax bases. The amount of deferred tax provided is based on the expected manner of realisation or
settlement of the carrying amount of assets and liabilities using tax rates enacted or substantively enacted at the
reporting date. The effect on deferred tax of any changes in the tax rate is recognised in profit or loss except to the
extent that it relates to an item recognised in equity in which case it is recognised in equity.
A deferred tax asset is recognised to the extent that it is probable that future taxable profit will be available against
which the associated unused tax losses and deductible temporary differences can be utilised. Deferred tax assets are
reduced to the extent that it is no longer probable that the related tax benefit will be realised. A deferred tax asset is
not recognised on initial recognition of an asset or liability in a transaction that at the time affects neither accounting
nor taxable profit or loss.
Johannesburg
30 December 2015
Sponsor
Grindrod Bank Limited
Date: 30/12/2015 05:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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